What if I save in 100k in Naira and the inflation still happens?
Is it not better for me to save it in dollar and get a better sum like 250k to match the inflation?

thebosstrevor1:


Answer my question

*sigh.

Like someone rightfully asked, how does the rate of devaluation of naira against the dollar match inflation in Nigeria?

Compared to the rate of inflation in the country, is the interest rate higher or lower?

In principle, any time the value of another currency is rising, relative to yours, you'll make money by keeping it in that currency.

Plomo:


*sigh.

Like someone rightfully asked, how does the rate of devaluation of naira against the dollar match inflation in Nigeria?

Compared to the rate of inflation in the country, is the interest rate higher or lower?

In principle, any time the value of another currency is rising, relative to yours, you'll make money by keeping it in that currency.

Nigeria is an import dependent country, when the dollar rises, importers will have to get more naira to get a dollar,when they import the goods, they also have to make their gain which means increase in the cost of their products, do you know that local producers also rise the cost of their product claiming the dollar has risen to justify their price increment, all these help in increasing inflation.

For your last statement, it is true that you get more money money when the dollar increases but you also have to calculate for inflation when you convert your dollar to naira for emergencies.

If naira falls, your dollar in your savings suffer if not in use that is because of inflation, if the dollar falls, your naira in your savings gets more value.

SpellingBot:
What if I save in 100k in Naira and the inflation still happens?
Is it not better for me to save it in dollar and get a better sum like 250k to match the inflation?

You cant match future inflation by just saving dollar, you have to make the dollar earn profit or interest to leverage against inflation.

aribisala0:
You are not in a position to ask me questions

I did not state any opinions

Ei incumbio probatio non qui negat

The onus is on he who declares a thing to prove it not he who denies

Only abuse that comes out from a daft brain.

Stop commenting, pls,let people who have the intellectual capacity comment....my last reply to you

thebosstrevor1:


Nigeria is an import dependent country, when the dollar rises, importers will have to get more naira to get a dollar,when they import the goods, they also have to make their gain which means increase in the cost of their products, do you know that local producers also rise the cost of their product claiming the dollar has risen to justify their price increment, all these help in increasing inflation.

For your last statement, it is true that you get more money money when the dollar increases but you also have to calculate for inflation when you convert your dollar to naira for emergencies.

If naira falls, your dollar in your savings suffer if not in use that is because of inflation, if the dollar falls, your naira in your savings gets more value.

You’re basing your entire assumptions on the belief that someone will convert money to dollars and keep in his wardrobe.

You should also factor the going interest rate for saving dollars. Even at that, you should consider the interest rate for saving dollars in a US bank account.

That being said, as an investor, it goes beyond keeping dollars in your bank account, you will also make the money work for you.

Finally, saving your money in naira is foolish because with an inflation rate of over 18% and an interest rate of 11.5%, tell me how it makes no sense to save money in dollars?

Plomo:


You’re basing your entire assumptions on the belief that someone will convert money to dollars and keep in his wardrobe.

You should also factor the going interest rate for saving dollars. Even at that, you should consider the interest rate for saving dollars in a US bank account.

That being said, as an investor, it goes beyond keeping dollars in your bank account, you will also make the money work for you.

Finally, saving your money in naira is foolish because with an inflation rate of over 18% and an interest rate of 11.5%, tell me how it makes no sense to save money in dollars?

There is no interest on saving your dollar in domiciliary accounts , it is just a dollar saving account.

The majority of retail owner of dollars, just save, they do not invest or earn anything on their saved dollars.

It is foolish to save your money in dollar thinking that when naira is 1000 to a dollar, you have made a profit but in reality because of future inflation caused by devaluation, you actually made a loss.

I

Op made a very intelligent point kudos. I even liked your contribution. Inflation would always be a big hammer.

thebosstrevor1:


That is dangote, he is a big player, his dollar isnt just lying down, it is earning interest and profit from his various business.

It is useless for the average joe to just say he want to save in dollar, of what benefit will it be to him if in the next 3 years a dollar becomes 1000 naira, if dollars becomes 1000 naira, inflation will increase and cost of living will also increase, his saved dollars, when converted at 1000 naira to a dollar, will be useless because inflation will destroy the value.

Hmmm. if he leaves the money in his bank now that dollar is 500/1$, and then the next 3 years , dollar rises to 1000/1$, what will happen to the money in his bank ?.

thebosstrevor1:


It doesn't work like that, you need to think about future inflation.

100k ×200= 200k

100k ×500=500k in 3 years.

The price of goods and services would have increased because of the increase in the price of dollar from 200 to 500

Your 500k when dollar is worth 500 will be worth like 250k because of inflation.

U said the 500k will worth like 250k because of inflation if the person saves in dollars , now pls tell me what will happen if the person saves the 100k in bank and inflation still happens ?

Is it not better for me to save it in dollar and get a better sum like 250k to match the future inflation?
Or u want me to keep the 100k in bank that will worth like 50k if inflation happens ??

thebosstrevor1:


There is no interest on saving your dollar in domiciliary accounts , it is just a dollar saving account.

The majority of retail owner of dollars, just save, they do not invest or earn anything on their saved dollars.

It is foolish to save your money in dollar thinking that when naira is 1000 to a dollar, you have made a profit but in reality because of future inflation caused by devaluation, you actually made a loss.

I

Not true there is interest

Clearly you are just mouthing off and here to spout opinions without facts, figures or analysis

Another quota system sighted clearly

Someone that saved his naira when dollar was 360

Now that dollar is 505

Dollar will continue to rise


You no get point

Under Buhari, the Naira is trying to be like the Zimbabwéen currency in a very fast & alarming rate. Currently you lose money by having Naira & gain money by having Dollar. Free money by having money that’s not naira.

@op

I don't expect bororo like you to understand simple principles of economic

thebosstrevor1:


There is no interest on saving your dollar in domiciliary accounts , it is just a dollar saving account.

The majority of retail owner of dollars, just save, they do not invest or earn anything on their saved dollars.

It is foolish to save your money in dollar thinking that when naira is 1000 to a dollar, you have made a profit but in reality because of future inflation caused by devaluation, you actually made a loss.

I

There is interest on saved dollars please. Union bank pays a whopping 3% p.a on dollars saved.

Inflation inflation, is dollar not inflating too. Or you think the dollar is immune?

Bros saving your money in dollars pegs it’s value against that of the dollars. It is called hard currency for a reason. So if the dollar value rises as against the naira, your money will also appreciate. But if you save money in naira and it continues getting devalued, you will spend more naira to buy goods and services that depend on dollar prices at any given time. Which then brings us back to this point.

thebosstrevor1:

Nigeria is an import dependent country, when the dollar rises, importers will have to get more naira to get a dollar,when they import the goods, they also have to make their gain which means increase in the cost of their products, do you know that local producers also rise the cost of their product claiming the dollar has risen to justify their price increment, all these help in increasing inflation.

Furthermore, let’s assume we’re talking about money in the bank not tied to any personal investment. You said

thebosstrevor1:

Calculate the inflation rate when dollar was 200 against a naira and in 3 years time calculate the inflation rate of dollar against the naira when it becomes 500.

And I told you that with an inflation rate higher than an interest rate, saving money in naira is foolish cos your money is loosing value faster than it is making interest when saved in a bank. But in the US, the inflation rate is pegged at 2.4% and naira is losing value at a whopping rate of 17% +-, where would you rather save?

There are a multitude of other factors that also influences inflation and currency devaluations.

In the grand scheme of things, a weaker domestic currency should stimulate exports which in theory will make foreigners buy our currency thereby strengthening it but no! We’re importing and have been importing more than ever.


In fact, your headline can be re-written as “It Makes No Sense To Save Your Dollars In Bitcoin” because, like you’re arguing, inflation will devalue dollars.


lol or abi I am not even understanding what you’re typing sef…

You just settle down compose rubbish.. Mr average Joe

thebosstrevor1:
This is for all those salary earners, retailers, remittance receiver and those who are not medium to big time traders.

What is the essence of saving part of your salary, income or remittance in dollar, if you are expecting dollar to increase against the naira? Even if dollar is 1000 in the next 3 years, how does it improves your income or financial status? Imagine, you save 100 dollars every month ×12 = 1200, that is 606,000 using current exchange rate of 505, if dollars becomes 1000 naira in 3 years, that will be about 1.2 million knowing that inflation would have increase to almost 22%, that means your 1.2 million has already been devalued because of inflation.

No normal person will pray for naira to be 1000 naira against a single dollar in 3 years, it infact makes your dollar worthless except you are using it for international transactions or using it for business, you should be praying for the fall of dollar against the naira to make your naira worth it, logically when you look at it, just saving your dollar when naira is depreciating hurt you, you shouldn't do it.

Dollar can only be useful if it is doing business on your behalf and earning interest, even if at the end, the naira reaches 1000 against a dollar, you still benefit because it becomes a good leverage against inflation.

The real beneficiary of saving their money in dollars are the big dogs of our society, they make dollar work on their behalf by trading and investing it in asset that bring interest and profit and not by just making it lie down in their save.

I think, and I'm 100% sure, I had mentioned you before now. You have inferiority complex. I don't need to see you to actually ascertain that; you oftentimes want to make sense, maybe to feel this happiness within, but you end up messing stuffs up. I could remember I sent a comment to you where I said, " when a fool keeps shut, even he is considered wise" . It's a bible verse from the book of proverb.


Now let's come to what you wrote up there. Even from the post you made, one isn't affected saving in dollar. You will grow more than you deposited. Have you taken time to imagine if one had saved in naira, what might have happened? Use your No. 6

thebosstrevor1:
This is for all those salary earners, retailers, remittance receiver and those who are not medium to big time traders.

What is the essence of saving part of your salary, income or remittance in dollar, if you are expecting dollar to increase against the naira? Even if dollar is 1000 in the next 3 years, how does it improves your income or financial status?

Imagine, you save 100 dollars every month ×12 = 1200, that is 606,000 using current exchange rate of 505, if dollars becomes 1000 naira in 3 years, that will be about 1.2 million knowing that inflation would have increase to almost 22%, that means your 1.2 million has already been devalued because of inflation.

No normal person will pray for naira to be 1000 naira against a single dollar in 3 years, it infact makes your dollar worthless except you are using it for international transactions or using it for business, you should be praying for the fall of dollar against the naira to make your naira worth it, logically when you look at it, just saving your dollar when naira is depreciating hurt you, you shouldn't do it.

Dollar can only be useful if it is doing business on your behalf and earning interest, even if at the end, the naira reaches 1000 against a dollar, you still benefit because it becomes a good leverage against inflation.

The real beneficiary of saving their money in dollars are the big dogs of our society, they make dollar work on their behalf by trading and investing it in asset that bring interest and profit and not by just making it lie down in their save.

Very true, brother

Plomo:


There is interest on saved dollars please. Union bank pays a whopping 3% p.a on dollars saved.

Inflation inflation, is dollar not inflating too. Or you think the dollar is immune?

Bros saving your money in dollars pegs it’s value against that of the dollars. It is called hard currency for a reason. So if the dollar value rises as against the naira, your money will also appreciate. But if you save money in naira and it continues getting devalued, you will spend more naira to buy goods and services that depend on dollar prices at any given time. Which then brings us back to this point.



Furthermore, let’s assume we’re talking about money in the bank not tied to any personal investment. You said



And I told you that with an inflation rate higher than an interest rate, saving money in naira is foolish cos your money is loosing value faster than it is making interest when saved in a bank. But in the US, the inflation rate is pegged at 2.4% and naira is losing value at a whopping rate of 17% +-, where would you rather save?

There are a multitude of other factors that also influences inflation and currency devaluations.

In the grand scheme of things, a weaker domestic currency should stimulate exports which in theory will make foreigners buy our currency thereby strengthening it but no! We’re importing and have been importing more than ever.


In fact, your headline can be re-written as “It Makes No Sense To Save Your Dollars In Bitcoin” because, like you’re arguing, inflation will devalue dollars.


lol or abi I am not even understanding what you’re typing sef…

The fact that you admitted that the dollar is affected by inflation shows also that just saving in any form of currency isn't a means to leverage against inflation.

I just saw that union bank gives a 3% p.a interest on your dollar, but how does that help.

Imagine you save 1200 dollars per year, that is mere 36 dollar interest per year compare with someone doing doing business with his 20k dollars everyday or use it to buy international real estate and earning rent every month. In the next 5 years, his property value will be worth 60k that is minus rent and interest while you keep earning 3% per annum on your saved dollar...he has leverage against inflation while you have no leverage.